A continuous layer of vegetation and soil covering the surface of a roof is referred to as a green roof. Also known as a living roof, it consists of many layers such as a waterproofing membrane and a protective layer, soil, and plants on a traditional roof. A green roof is a proven method to reduce excessive heat, improve energy efficiency and air quality.
The global green roof market was valued at nearly USD 1.5 billion in 2019. It is projected to register a compound annual growth of over 10% from 2020 to 2026. The market is therefore expected to reach a valuation of around USD 3.0 billion by the end of 2026.
The green roof market is categorized based on type available into extensive and intensive. The former is largely used in the residential sector and in sheds and garages. Its installation is simple and can easily be integrated with existing roofs. Most plants used with these types of roofs are ones that require minimal water and have shallow roots. For all these reasons, this type is anticipated to garner more than 50% of the market share by 2026.
The intensive type, on the other hand, is projected to expand at the fastest growth rate during the forecast timeline. It is a popular category recording a demand value of over USD 150 million in 2019. An intensive green roof has its applications ranging from home gardens to full-scale public parks.
Bifurcated into residential, commercial, and industrial, the application segment was led by the commercial category in 2019. This category is also estimated to grow at a rate of over 15%, the fastest among its counterparts, over the forecast period. The green roof helps in reducing the negative effects of the urban landscape without making any changes to the commercial sector that consists of malls, schools, public and private offices, etc. Intensive living roofs are widely used in the commercial segment.
The expansion of living roofs in the residential segment is reliant on the growing population and the resultant demand for residential buildings. Many homeowners are investing in green roofs since they add aesthetic value and improve the air quality of their homes. Moreover, these roofs act as a natural filter and help in retaining and modifying the temperature of rainwater.
The European region led the green roof market in 2019 and is estimated to continue this trend throughout the forecast period. Various initiatives implemented by the European Commission are fueling the growth of the market. For instance, the German government is encouraging the use of living roofs through several policies such as the funding program for greening measures implemented in Stuttgart. These regulations are propelling the green roof market growth in the region.
Growing population, rapid urbanization, increased disposable incomes, and rising construction activities in the Asia – Pacific region are the major contributors to the expansion of the green roof market. Furthermore, projects such as the Skyrise Greenery Program, encourage the adoption of living roofs in residential and commercial buildings. Additionally, to tackle environmental issues, cities like Tokyo and Hong Kong are drawing up policies that support the growth of green roofs. Owing to all of these factors, the green roof market is expected to register massive growth in the region.
The growing population has resulted in the expansion of the construction industry. Expansion of this industry coupled with improved standard of living is projected to propel the green roof market forward. Rapid industrialization in emerging countries will provide a further boost to the market.
The installation of living roofs assists in the conservation of water and reduces solar gain using natural processes. Also, these products help in reducing the carbon load of buildings and lowers electricity consumption. This makes living roofs an eco-friendly and energy-efficient product. Therefore, these factors are driving the green roof market growth.
A subsidy of 30-60% on installation cost provided in Hamburg is fueling the market growth. Additionally, the New York Department of Buildings announced a mandatory installation of either solar systems or living roof systems or both for all new and existing buildings in November 2019. Stringent regulations set by various authorities across the globe will positively impact the green roof market.
Unfavorable climatic conditions such as extreme heat in regions like the Middle East may hinder the market growth. Furthermore, the lack of adequate guidelines and proper design layouts for the installation of these roofs may pose a challenge for the expansion of the green roof market. The non-availability or the fewer number of products available for maintenance of living roofs may also restrict market expansion.
The pandemic has affected worldwide trade, economy, and finance. This has created a disruption in supply chains and has resulted in the temporary closure or shutdown of manufacturing activities on a global scale. Moreover, global lockdowns have halted the production of green roof systems. All these factors together have negatively affected the green roof market significantly.
The key players operating in the market are:
The research report analyses the ecosystem of the green roof market and categorizes it to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.